WASHINGTON (1/23/13)--The Consumer Financial Protection Bureau announced Tuesday that it is delaying the effective date of its international remittance transfer rule that was set to go into effect Feb. 7.
A new effective date will be announced later this year, the bureau said in a blog post.
The Credit Union National Association has urged the CFPB, including in its comment letter filed Jan. 15, to postpone the effective date of the remittance rule and to give credit unions as much time as possible to comply.
The bureau is also accepting comments on a separate proposal that provide more flexibility to international remittance transfer providers regarding the disclosure of foreign taxes and fees imposed by the recipient's institution for receiving a remittance transfer. The proposal would also revise the error resolution provisions that apply when a remittance transfer is not properly delivered because the sender provided incorrect information.
Under the final rule published last February, remittance transfer providers will be required to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, certain fees and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers will also be required to investigate disputes and correct errors.
The CFPB has provided a safe harbor exemption from the rule for remittance providers that transact 100 or fewer remittances per year.